CWB
Funding of Rail Car Coalition Creates Liability for Farmers and Violates
Federal Legislation
(December 6, 2004, Airdrie, AB.) "It is preposterous that
the Canadian Wheat Board (CWB) use farmer's hard earned money to fund the
Farmer Rail Car Coalition (FRCC) without consulting farmers. We do not
need more liabilities," said Douglas McBain, President, Western
Barley Growers Association (WBGA) when commenting about the admission by
the CWB that it gave $135,000 to the FRCC.
Under questioning by members of the House of Commons Standing Committee on
Agriculture, witnesses admitted that the CWB had given the FRCC $135,000
to fund their activities. Of the $135,000 the CWB gave to the FRCC,
$85,000 was a gift and $50,000 was a loan with provisions to also become a
gift.
"The CWB administration has no legal authority to give money to the
FRCC - this is outside the legislation governing the CWB. This is a very
serious breach of the CWB act" states McBain.
"The FRCC proposal is one which adds cost and bureaucracy to the
grain transportation system without a corresponding cost reduction in what
goes on today, therefore farmers costs will increase - not go down"
said McBain.
"Is this the FRCC fronting for the CWB in an effort to gain control
of assets such as rail cars and terminals, eliminating all competition for
our business" questioned McBain.
The WBGA has long advocated for a fully commercial and competitive grain
handling and transportation system that promotes efficiencies and cost
control enhancing prairie farmers competitive position in the world
market.
"The CWB's involvement in grain transportation and handling has and
continues to cost farmers millions of dollars every year in excessive
storage and lost efficiencies - delivery times of board grains as compared
to non-board is a living example" added McBain.
"We are asking the Minister responsible for the CWB to remove the
government appointed CEO pending an investigation into this violation of
the CWB act - that of misappropriation of farmers pool account money, and
take action to recover farmers money" said McBain. |
